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Learning Activity #4: Value Chain Discussion

For help with this discussion, review the video Value chain management. The importance of being relevant, listed in the Resource Document. This video provides an overall view of the Value Chain, giving you a starting point for analyzing Levi Strauss’s value chain (both internally and externally). From the perspective of your roles for this week, consider the products at Levi Strauss. In your initial post, identify all types of costs and cost behaviors. Discuss the concepts in the discussion forum and develop a comprehensive list of costs and cost behaviors that you will work through in following weeks. Include the following:

 General flow of product, including current in & out sourcing aspects.

 Aspects of the company’s manufacturing overhead (be specific).

 Aspects in Selling, Administrative, and Overhead.

Respond to the above in the discussion forum titled Value Chain Discussion. Use the Discussion rubric provided in the syllabus to ensure you have met all the criteria.

Objective 3: Distinguish between spoilage, rework, and scrap and the impact on decision-making.

Spoilage, rework, and scrap are related in that the end result is a product that cannot be sold; however, there are various reasons why a company may want to distinguish between them. Managerial accounting is focused on managing and controlling costs, and how costs are classified helps with developing procedures to meet those goals.